b'44American Journal ofTransportation ajot.com(DESTINEDcontinued from page 30) the greater sustainability of wood framing havereportedlyimprovedtrackquality,oversteel-and-concreteformulti-storey reduced travel times by about 10 hours. buildings, and it has Russia eager to pro-Since 2018, the Canadian and Mani- vide its softwood lumber. Other foreign tobagovernmentshaveinvestedoverinroads will take effort and time.$300 million in the restoration, operationOntarioexports97%ofitsoverall and maintenance of the Hudson Bay Rail- forestproducts,valuedatnearlyC$5.8 way and AGG assets. This has allowedbillion (US$4.18 billion), to US markets. the port to begin shipping critical miner- In terms of lumber alone, its about 65%. als in the summer of 2024. For Ontario in particular, its quite chal-Inarelateddevelopment,thispastlenging to find and establish new foreignEND-TO-END FOREST PRODUCTS LOGISTICSMarch the AGG announced a significantmarkets because of where were located, expansionofitscriticalmineralexportDunnsays.Itjustmakessensefor partnershipwithHudbayMineralsInc.Ontario to supply the U.S. because were Building on last years successful ship- so close to the major American markets, mentofzincconcentratefromthePortsuch as Chicago and New York City.MontrealVancouverCharleston Seattleof Churchill to international markets, thisThe near doubling of rates from 8% yearHudbayand AGGplantodoubleuntil August 2024 to 14.54% to now 35%Norfolk (Dec 1)thevolumeofcriticalmineralsshippediscompoundingtheotherdifficulties through the Port of Churchill. facing the Ontario industry that has led to some mill operations shutting down andWHY CHOOSE RAY-MONT?others reducing shifts. Trade barriers are (SURGINGcontinued from page 31) worsening the situation in whats already 2025, as suggested by cumulative cargoa weaker demand for new homes in theDamage-Free Transloadingfigures to the end of July for both bulk andU.S. and Canada, Dunn explains. Plus,Precision handling for pulp & paperyour cargo stays protected container shipments. theresthehighercostsofinsurance,and intactLookingatallterminals,through- trucking and the challenges of recruiting put for the first seven months of 2025and maintaining a workforce.totalled15.2millionmetrictons,1.5AfurtherrateimposedunderSec- Maximized Container Loadsmilliontonsaboveayearearlier. Thistion 232 has the potential of eliminatingOptimize payloads to reduce costs and boost efficiencywassparkedbyincreasesingrainandall Canadian lumber shipments to the US, coal shipments. Box volume through theDunn warns. The resulting oversupply in DP World Fairview Container Terminalthe Canadian domestic market would tankFast Transfersadded up to 5.1 million tons comparedthe price and wed see mills curtail theirSpeedy loading to meet dynamic demandwith 4.7 million tons. production, he adds.Some 23.1 million tons of cargo movedDunn says the Ontario Forest Indus-through the Port of Prince Rupert in 2024, whiletries AssociationwelcomesPrimeMin- Cost Savingsintermodal volumes at Fairview Containerister Mark Carneys financial assistanceCut transit time and streamline operationsTerminal rose five percent year-over-year totodate.Theprogramsdetailsareyet 7.4 million tons. Performance was impactedto be worked out and the C$700 million by the realignment of carriers transpacificloan guarantee program can be eaten upSmart Storage Solutionstrade routes, two labour disruptions, and thequickly by the $10-billion industry, butFlexible inventory management tailored for your needsbrief suspension of rail service due to wild- wereencouragedbythestepsbeing fire that paused terminal operations.taken, he says. The northern British Columbia port isAs for the $500 million dedicated toComplete Logistics Chainactively diversifying through the develop- domestic homebuilding and market diver- From storage to transloading to ocean freightseamless ment of new terminal and logistics capac- sification, Dunn says the industry needs tointegrationity and building greater resiliency againstestablish whats what first with the U.S. marketfluctuations.In2024,thePortmarketplace.Were also excited to con-marked considerable progress on multipletribute to the ambitious projects that Pre-strategic projects setting the stage for long- mier Doug Ford has announced for Ontario term growth and sustainability. These proj- homebuilding, as well as the opportunity ects represent over $2.5 billion in capitalto use more forest biomass for energy pro-investmentandaredeemedessentialtoduction,butwerefacinganimmediate strengtheninganddiversifyingexports,cliff with the 35% and potentially higherto buy and ship. Even with duties, Cana- 40,000inearlierdecades. Theshortfall maximizing supply chain efficiency, andtariffs with our biggest U.S. market. dian softwood has been selling at aboutderives from various factors that include restoring cargo volumes. $400 per 1,000 board feet compared toa chronic shortage of workers, which is us i ndustryC hallenges $600 per 1,000 board foot for German ora problem being compounded by current M aJorP roJeCtM ilestones The U.S. has been attempting to closeSwedish products. immigration policies, along with a lack of ConstructioncommencedonthethedomesticgapindifferentwaysbutWhile President Trump has aimed toavailablebuildinglotsandhigherpost-RidleyIslandEnergyExportFacilitywith varied success. At the end of August,fill the supply gap by issuing an execu- pandemic building costs. We saw build-(REEF), a large-scale LPG and bulk liq- softwood lumber in the U.S. was pricedtiveorderthatderegulatesloggingining materials increase 15% in costs in both uidsexportterminal.The$1.35billionat its lowest all year ($18 per 1,000 boardU.S. national parks, the country has nei- 2020 and 2021, and while theyve risen AltaGas and Vopak joint venture reachedfeet). We believe its mainly because oftherthesawmillsnorworkforcetodoless since then, theyve never reverted to afinalinvestmentdecisioninQ22024.slowing demand for single-family homeso.ForestexpertsRussTaylorofRusswhere they were before COVID, Quint REEF will significantly strengthen Cana- permits since the start of 2025 because ofTaylor Global and David Elstone of Sparnotes.Cumulatively,theyrenow43% dianenergyexportstothe AsiaPacific,cost uncertainties and continuing afford- Tree Group say it would take decades tohigher than prior to 2020.withaninitialdevelopmentphasethatability challenges, Wade says. establish the labour and supply chain toAffordabilitychallengesalreadyexisted includes approximately 55,000 barrels perOverthelastdecade,significantincrease timber harvesting, including theandwillbefurtherworsenedbythe day of LPG export capacity and 600,000American and Canadian investment has70newlarge-scaleU.S.sawmillsthathigher costs.barrels of LPG storage.goneintoincreasingtheU.S.domesticResourcewise estimates is necessary forHomebuilders are already doing all TheCanadaInfrastructureBanksupply produced by the US South (Ala- the U.S. to achieve self-sufficiency. they can to meet buyers where they are reachedfinancialcloseona$150mil- bama, Arkansas, Georgia, North Carolinaby shifting their entire production line to lion loan to PRPA for the first phase ofandSouthCarolina).B.C.firmshaves teePh ousingi MPliCations more affordable smaller homes on smaller CANXPORT in Q2 2024 and construc- investedtooffsetlowerCanadiansalesThe current 35.19% duty, along withlots, as well as streamlining options, pro-tioniswellunderway.Thelarge-scaleresulting from US duties, revised logginganysteepertariff,isdetrimentaltoUSvidingincentivessuchascoveringthe export logistics and transloading facilityregulations,andreducedforestsupply.homebuilders and homebuyers longer term,closing costs or buying down mortgage will be constructed and operated by Ray- However,millsarecurrentlyoperatingwarns Rose Quint, NAHBs assistant vicerates, Quint shares.Mont Logistics to provide 400,000 TEUsat or near a loss with production curtail- president,SurveyResearch.Rightnow,Theoverridinghopeamongthe ofannualcapacityforforestry,agricul- mentsnecessarywithpricechallengesbased on the announced tariffs, homebuild- Canadian producers and American home-tural, and resin products. andcostuncertaintiesperpetuatingtheers expect it will cost an additional $10,900builders is that a suitable agreement will TrigonPacificTerminals(bulkandsoft demand for new home construction.per home based on the higher costs of tariffsbe reached between the US and Canada. LNG)madeprogressonconstructionofIt takes about nine months to build a newon not only lumber, but also aluminum, steelThereseemstobeprogress,Dunn its second marine berth. The Berth Twohome, and the lumber is only purchasedand copper, she says. says. President Trump isnt necessarily BeyondCarbonprojectwilladdsignifi- once construction begins, Wade shares.Higher mortgage rates of 6% to 7%beholden to the American industry, and cant vessel berth capacity to the terminal.And, right now, its hard to say what thatsince 2022 have already weakened hous- he always wants to make a deal.This marine infrastructure is expected to belumber will cost. ing demand and caused lumber prices to completed by the end of this year. If the demand resurges in 2026 basededge downwards. The real effect of tariffs ongreaterpricecertainties,themarketmight be delayed by wholesalers having(IMPACTcontinued from page 40)could seriously be undersupplied in termsstockedupbuildingmaterialsearlierinIn 2024, container volumes at the Port (DISPUTEcontinued from page 38) of lumber at a time when homes are des- the year to avoid higher tariffs.of Vancouver increased 11% to 3.5 mil-it would be a small amount compared toperately needed, according to Wade.Years of building above and beyondlion twenty-foot equivalent units (TEU). our US exports, Niquidet explains. TheUShasroughlyquadrupledour traditional baseline is required to makeImports(ladeninbound)increased14% Selling elsewhere isnt simple. Brit- lumber imports from other countries sinceup the 1.5 million deficit that we have into 1.8 million TEU, while exports (laden ish Columbia is best placed to build onthesoftwoodlumberagreementwithnewhousingunits,Quintadds.Sinceoutbound)increased5%to794,724 establishedAsia-Pacifictraderelation- Canadaendedadecadeago.However,the 2010s, the U.S. has been construct- TEU. Emptycontainersincreased11% ships but currently faces a lagging Japa- theseimportsmainlyfromGermanying approximately 21,000 housing unitsto 857,343 TEU. (See Leo Ryan story for nese economy. China is not yet sold onand Swedentend to be more expensiveper one million population, compared todetails on Canadas seaports on page 26)'